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The company I chose for this week is General Electric, Co. They bought out Alstrom’s power and grid unit in 2015. GE is one of the biggest manufacturing companies globally. General Electric, Co. targets aviation, healthcare, power, renewable energy, digital, additive manufacturing, venture capital, finance, lighting, transportation, and oil and gas.


Since GE must maintain its research and development it’s hard to cut costs by minimizing employees or employee times. They could review the amount of their starting pay for new employees, but most of the positions are “big” jobs. I see more than by cross-training their employees they could cut the amount to their direct labor costs. By cross-training the company can minimize the number of employees they bring in and therefore will cut down on cost, also if one of the employees leaves then another person can take over that job, this will allow promotion within the company and keep wages a little lower. They will need to make sure they are not giving their employees too much responsibility because turn over can turn into a large expense as well. If GE can reduce turnover, then their labor cost could come down significantly as well. This reduces the amount that they are expending employees to train, and those employees are then able to continue on with research and development.

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Depending on the jobs being performed then GE could take salaried employees and turn them into commission-based employees, this will ensure that they are getting sales and then basing their salespeople wages on commission. Eliminate redundancy between departments as companies grow, they often evolve into a group of independent departments, effectively eliminating inter-departmental communications and flow. In many cases, the same task is repeated in several departments. Periodically review your processes – handling orders, collecting funds, directing installations – to ensure minimal redundancy between separate functions.

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